The Economics of Taxation: Efficiency and Equity

This course provides an intensive, microeconomic investigation into the twin pillars of tax analysis: efficiency and equity. It rigorously models the impact of various taxes on individual behavior, focusing on decisions related to labor supply, savings, and investment, and quantifying the resulting deadweight loss. Concurrently, the course delves into the concept of tax fairness, exploring measures of progressivity and the distributional effects of the tax-and-transfer system. Participants will use economic theory and empirical evidence to critically evaluate whether a tax system achieves its goals of raising revenue while minimizing economic distortion and promoting social justice.